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Can Whiting Petroleum (WLL) Pull a Surprise in Q4 Earnings?
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Domestic oil and gas explorer Whiting Petroleum Corp. is set to release fourth-quarter 2016 results after the closing bell on Tuesday, Feb 21.
In the preceding three-month period, the company delivered a negative earnings surprise of 23.68%. The company’s earnings surprise history is disappointing as it missed estimates in all of the last four quarters with an average negative surprise of 33.14%.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Crude oil, which is a major determinant of global economic growth, was extremely volatile in 2016. The fluctuation in the cost of the commodity made the markets extremely risky and investors jittery. Hence, we believe that the dismal crude pricing scenario will continue to weigh on Whiting Petroleum’s bottom line.
Whiting Petroleum Corporation Price and EPS Surprise
However, efficiencies on the production front might be able to mitigate some of the damage. The company expects to maintain a flat production profile in the upcoming few quarters despite asset sales.
Moreover, Whiting Petroleum has been able to reduce costs, which should provide some buffer amid tumbling commodity prices.
Earnings Whispers
Our proven model does not conclusively show that Whiting Petroleum will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat the consensus mark. That is not the case here as you will see below.
Zacks ESP:Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 33 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Whiting Petroleum has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
While earnings beat looks uncertain for Whiting Petroleum, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter.
Sprague Resources LP has an Earnings ESP of +3.64% and a Zacks Rank #2. The partnership is anticipated to release fourth-quarter earnings on Mar 9.
Pioneer Natural Resources Company (PXD - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #2. The company is likely to release fourth-quarter earnings on Feb 7.
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Can Whiting Petroleum (WLL) Pull a Surprise in Q4 Earnings?
Domestic oil and gas explorer Whiting Petroleum Corp. is set to release fourth-quarter 2016 results after the closing bell on Tuesday, Feb 21.
In the preceding three-month period, the company delivered a negative earnings surprise of 23.68%. The company’s earnings surprise history is disappointing as it missed estimates in all of the last four quarters with an average negative surprise of 33.14%.
Let’s see how things are shaping up for this announcement.
Factors to Consider This Quarter
Crude oil, which is a major determinant of global economic growth, was extremely volatile in 2016. The fluctuation in the cost of the commodity made the markets extremely risky and investors jittery. Hence, we believe that the dismal crude pricing scenario will continue to weigh on Whiting Petroleum’s bottom line.
Whiting Petroleum Corporation Price and EPS Surprise
Whiting Petroleum Corporation Price and EPS Surprise | Whiting Petroleum Corporation Quote
However, efficiencies on the production front might be able to mitigate some of the damage. The company expects to maintain a flat production profile in the upcoming few quarters despite asset sales.
Moreover, Whiting Petroleum has been able to reduce costs, which should provide some buffer amid tumbling commodity prices.
Earnings Whispers
Our proven model does not conclusively show that Whiting Petroleum will beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat the consensus mark. That is not the case here as you will see below.
Zacks ESP:Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 33 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: Whiting Petroleum has a Zacks Rank #3. Though a Zacks Rank #3 increases the predictive power of ESP, the company’s Earnings ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
While earnings beat looks uncertain for Whiting Petroleum, here are some firms from the energy space you may want to consider on the basis of our model, which shows that they have the right combination of elements to post earnings beat this quarter.
W&T Offshore, Inc. (WTI - Free Report) is expected to release fourth-quarter earnings results on Mar 14. The company has an Earnings ESP of +73.91% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sprague Resources LP has an Earnings ESP of +3.64% and a Zacks Rank #2. The partnership is anticipated to release fourth-quarter earnings on Mar 9.
Pioneer Natural Resources Company (PXD - Free Report) has an Earnings ESP of +10.00% and a Zacks Rank #2. The company is likely to release fourth-quarter earnings on Feb 7.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>